US: VP Vance To Address US Troops In Greenland Shortly

European curves traded slightly flatter Wednesday, with short-ends underperforming, and periphery / semi-core EGBs outperforming.

• An early bid in core FI alongside weaker equities, a further fall in gas prices and and a stronger US dollar faded over the course of the session as the latter recovered. The Bund rally continued after the cash close in futures as US President Trump announced 25% tariffs would be imposed on EU products.
• Data was scant either side of the Atlantic: German GfK consumer confidence fell to the lowest since April, while the IFO employment barometer suggested that job cuts continue.
• BOE's Dhingra noted that higher US tariffs on UK imports are unlikely to greatly impact UK inflation.
• Bunds outperformed Gilts across most of the respective curves, with twist flattening in both.
• Periphery EGB spreads tightened into the cash close as equities rallied. In semi-core, OATs outperformed, finishing close to the 2025 low of 70.8bp.
• The February Eurozone flash inflation round starts Thursday with Spain - MNI's preview of the round is here. We also get various Eurozone confidence indicators and the accounts of the January ECB meeting. 

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is up 0.3bps at 2.068%, 5-Yr is down 1.9bps at 2.196%, 10-Yr is down 2.5bps at 2.433%, and 30-Yr is down 2.7bps at 2.696%.
• UK: The 2-Yr yield is up 0.1bps at 4.175%, 5-Yr is unchanged at 4.182%, 10-Yr is down 0.7bps at 4.502%, and 30-Yr is down 0.8bps at 5.094%.
• Italian BTP spread down 1.8bps at 111.2bps / French OAT down 2.2bps at 71.7bps  

• US Data/Speaker Calendar (prior, estimate)
• 27-Feb 0830 Initial Jobless Claims (219k, 221k)
• 27-Feb 0830 Continuing Claims (1.869M, 1.871M)
• 27-Feb 0830 GDP Price Index (2.2%, 2.2%)
• 27-Feb 0830 Personal Consumption (4.2%, 4.1%)
• 27-Feb 0830 Durable Goods Orders (-2.2%, 2.0%)
• 27-Feb 0830 Cap Goods Orders (0.4%, 0.3%), Ship (0.5%, 0.3%)
• 27-Feb 0915 KC Fed Schmid on monetary policy/economy (text, Q&A)
• 27-Feb 1000 Fed VC Barr on novel activity supervision (text, Q&A)
• 27-Feb 1000 Pending Home Sales MoM (-5.5%, -0.9%)
• 27-Feb 1000 Kansas City Fed Manf. Activity (-5, -4)
• 27-Feb 1130 US Tsy $80B 4W & $75B 8W bill sales
• 27-Feb 1145 Fed Gov Bowman on community banking (text, Q&A)
• 27-Feb 1315 Cleveland Fed Hammack financial stability conf (text, Q&A)
• 27-Feb 1515 Philly Fed Harker on economic outlook (text, Q&A)

• The firmer stance on EU tariffs compared to the more appeasing extension for Canada and Mexico weighs on the single currency in recent trade, with EURUSD slipping from key resistance around 1.0530 to 1.0495 at typing.
• EURCAD sharply lower on the contradictory sentiment, trading the entire day's range in quick fashion, from 1.5095 to 1.5026 lows.